The House was in recess. The Senate voted 89-8 to pass its version of a $700 billion National Defense Authorization Act. The measure, which needs to be reconciled with the House-passed measure before final congressional consideration, would authorize a pay raise for the military and stronger missile defense but rejected a proposal by Defense Secretary Jim Mattis to begin closing more bases in 2021.

The House votes today on a short-term FAA extension that would last through March. The bill also includes language related to private flood insurance, expiring health programs and tax breaks for those affected by hurricanes Harvey, Irma and Maria. The bill still has to be cleared by the Senate this week before landing on the president's desk. Current FAA law expires Sept. 30. Senate is scheduled to vote today on the nomination of William Emanuel to be a member of the National Labor Relations Board.

The bill's authors, Sen. Lindsey Graham (S.C.) and Sen. Bill Cassidy (LA) revised their health care measure to steer additional funding to Arizona, Alaska and Kentucky in a last-ditch attempt to rally support from wary Republicans. Sen. Ted Cruz (TX) said he opposes the Graham-Cassidy bill, as does Arizona Senator John McCain. The Senate Finance Committee is scheduled to hold a hearing on the legislation today. In addition, Congress has until the end of the month to pass an extension of the Children's Health Insurance Program. While a deal has been reached by Senate Finance Committee leaders, the latest ACA repeal effort has cast doubt on whether lawmakers will reauthorize the program before it expires.

Tax reform is getting closer and closer, as the president is set to announce his plan for cutting rates, House Republicans on the Ways and Means Committee are huddling over the past two days to go through their final draft. We’ve been told that committee chairman (Kevin Brady) is expected to moderate a discussion with the members listing every possible cut, addition, credit and deduction, giving members their final say in defense of the cuts. The president is scheduled to be in Indiana on Wednesday, where he will call for a 20 percent corporate tax rate, down from the current level of 35 percent. The plan will also call for a reduction of the highest individual rate to 35 percent and for a 25 percent rate for taxes on "pass-through" business income, both decreases from the current rates of 39.6 percent.

PoliticoTrump administration officials huddled at the White House on Wednesday in a bid to chart a more cohesive energy and environmental policy strategy, including a game plan for communicating its position on climate change, according to three people familiar with the meeting. The meeting included more than a dozen deputy-level officials from the White House’s various policy councils, as well as representatives from federal agencies such as the EPA and the Energy Department.READ MORE

BloombergPresident Donald Trump and Republican leaders plan to release a tax framework this week that would dramatically cut taxes for corporations and the wealthy, provide a measure of middle-class tax relief and punish some households in Democratic-leaning states like New York and New Jersey. That summary, based on a list of details that’s circulating among Washington lobbyists, breaks from the president’s recent rhetoric against tax cuts for the rich.READ MORE

The Hill Congressional Republicans are facing the prospect of failing this week — perhaps for a final time — in their bid to repeal Obamacare.
Senate Republicans have yet to throw in the towel, but it seems more than likely their nine-month odyssey will be unsuccessful, with Sens. John McCain (R-Ariz.) and Rand Paul (R-Ky.) opposed to the measure and Sen. Susan Collins (R-Maine) leaning strongly against it.READ MORE

Politico President Donald Trump has spent weeks behind the scenes focused on getting the lowest tax rates possible for America’s largest corporations – even as he’s now committed to selling his nascent tax reform effort as a win for the American middle class. Trump will kick off this sales pitch in earnest on Wednesday at an Indiana rally, shortly after the “Big Six” tax negotiators – a group comprised of top administration officials, Hill Republican leaders, and the heads of the key congressional tax-writing committees – unveil their latest tax blueprint ahead of a House Republican retreat, according to six sources familiar with the tax negotiations.READ MORE